The Taiwan dollar rose to a two-week closing high on Monday on foreign fund inflows and after positive comments from the US Federal Reserve Chairman Ben Bernanke boosted investor risk appetite. The Taiwan dollar's close is the strongest since August 11. "Risky assets look more desirable now after Bernanke gave a positive outlook for the US economy," said a dealer in Taipei.
Bernanke on Friday offered his clearest signal yet that he think a global recovery is at hand, though he warned that growth would be sluggish. Trading on the main Taipei Forex Inc exchange was thin as many investors stayed away amid political uncertainty in the aftermath of Typhoon Morakot and ahead of a widely expected cabinet reshuffle in September.
On Monday, foreign institutions bought a net of T$6.790 billion ($206 million) in Taiwan stocks, which closed 2.76 percent higher on hopes of a global recovery. Dealers said improving Taiwan's export orders, released minutes before the foreign exchange market closed, could lend support to the local currency on Tuesday.